MK 13 Marketing Channels Flashcards
What are the roles of intermediaries
- Increase efficiency
- Adjust for assortment and quantity discrepancies
- Facilitate the searching process
- Maintain relationship with individual customers
- Provide market intelligence
Types of Intermediaries - Manufacturer’s Representative
Works for manufacturers as an external selling force. Doesn’t take ownership of goods
- Call buyer at staples for paperclip with an order
Types of Intermediaries - Wholesaler/ Distributor
Purchase goods and sell to retailers
- Common in food products
- Own the inventory
Types of Intermediaries - Agent/ Broker
An intermediary with legal authority to act on behalf of the manufacturer
- doesn’t take ownership of goods
- real estate/ investment banker
Types of Intermediaries - Retailer
Sells to end consumer
- doorway to consumer
Vertical Channel Conflict
Supply chain members that buy or sell to one another are not in agreement
Horizontal Channel Conflict
Disagreement among members at the same level in a marketing channel
Independent (Conventional) Marketing Channel
Independent members attempt to satisfy their own objective, often at the expense of others
Vertical Marketing System
members act in a unified system
Administered Vertical Marketing System
no common ownership or a contractual relationship but dominant channel member holds power
Contractual Vertical Marketing System
Independent firms at diff levels of marketing channel join through contracts to reduce conflict
Corporate vertical Marketing System
Channels owned by one company
Strategic/ Partnering Relationship
marketing channel members are committed to maintaing the relationship over a long period of time
Electronic Data Interchange (EDI)
computer-to-computer exchange of business documents from retailer to vendor and back.
Vendor Managed Inventory
Manufactur responsible for maintaining the retailers inventory levels in each store
Planners
Employees responsible for financial planning and analysis of merchandise and its allocation to stores
Dispatcher
Person who coordinated deliveries to the distribution center.
Cross-docking distribution center
merchandise cartons are prepackaged by the ventor for a specific store
Pick Ticket
document in a fork lift that displays how many of each item to get from storage space
Mobile Task Management
Wireless network and mobile device that received demand notification and enables speedy response
Intensive Distribution
Place product in as many outlets as possible
Exclusive Distribution
grant exclusive geographic territories to one/ few retail customers so no other retailer in that territory can sell particular brand
Selective Distribution
relies on a few selective retail customers in a territory to sell product
Full-Line Discount Stores
retailers that offer a broad variety of mech, limited services, and low prices
- Walmart, Target
Specialty Stores
Concentrate on limited # of complementary merch targeted towards specific market segment and the sales associate expertise
- Sephora
Category Specialist/ Bog Box Retailers/ Category Killers
A narrow but deep assortment of merch, less service
- Staples, Ikea
Extreme Value Retailers
Dollar Tree
Off-Price Retailers
Inconsistent Assortment of brand name merch at discount from manufacturers suggested retail price
- Outlets
Benefits of Internet and Omnichannel Retailing
- Deeper and Broader Selection
- Personalization
- Expand Market Presence
- Integrated CRM
- Increase customer satisfaction and loyalty
Reward power
Walmart offers rewards if wholesalers and manufacturers do what they want them to do
Coercive Power
Walmart threatens to punish channel members for not undertaking tasks
referent power
supplier wants to be associated with Walmart because allows them to attract other retailers’ business
Expertise power
relies on vast experience and knowledge to decide how much to market suppliers’ products, w/o giving supplier much to say
information power
walmart has vast information about consumer goods market, might exert power by withholding information
Legitimate Power
contract
Year 1 ACV What channels?
Online + Independent
How is independent channel adjusted in ACV?
percentage adjusted for acceptance (30%) and manufacture reps call up (80%)
Year 3 ACV channels?
Online + Independent (adjusted 80%) + Chain Stores
How are chain stores ACV calculated
percentage adjusted for penetration (50% yr 1, 70% max)
